Which of the following is true of service companies?
A) All costs of service companies are product costs.
B) Service companies modify and resell products they buy from manufacturers.
C) Revenues of service companies are only recorded on cash receipt.
D) Service companies carry no inventories of products for sale.

Question

Quizplus · Accepted Answer

Service companies generally do not sell physical products, so they do not carry inventories of products for sale. Instead, their services are typically based on human resources and expertise, which cannot be stocked like physical products.

Which of the Following Is True of Service Companies